Predatory Lending and the Destruction of the African-American Dream

Examines predatory practices in mortgage markets to provide invaluable insight into the racial wealth gap between black and white Americans.

Janis Sarra (Author), Cheryl L. Wade (Author)

9781108496063, Cambridge University Press

Hardback, published 9 July 2020

326 pages
23.6 x 15.9 x 2.4 cm, 0.61 kg

'Sarra and Wade offer a detailed, scholarly study of this regrettable situation that will be illuminating for students and researchers alike. Recommended.' T. E. Sullivan, Choice

Since the Great Recession of 2008, the racial wealth gap between black and white Americans has continued to widen. In Predatory Lending and the Destruction of the African-American Dream, Janis Sarra and Cheryl Wade detail the reasons for this failure by analyzing the economic exploitation of African Americans, with a focus on predatory practices in the home mortgage context. They also examine the failure of reform and litigation efforts ostensibly aimed at addressing this form of racial discrimination. This research, augmented by first-hand narratives, provides invaluable insight into the racial wealth gap by vividly illustrating the predation that targets African-American consumers and examining the intentionally obfuscating settlement terms of cases brought by the U.S. Department of Justice, states attorneys, and municipalities. The authors conclude by offering structural, systemic changes to address predatory practices. This important work should be read by anyone seeking to understand racial inequality in the United States.

1. Introduction
2. Foreclosure: at what cost and to whom?
3. Predatory lending practices prior to the global financial crisis
4. Predatory lending targeted African Americans
5. The implications of the collapse of the mortgage-backed securities market for consumer borrowers
6. A missed opportunity
7. Financial crisis reforms woefully inadequate
8. Incomplete justice: legal actions against predatory lenders
9. A subprime loan by any other name is just as predatory
10. 'Foregiveness', rather than forebearance or foreclosure
Appendix I.

Subject Areas: Banking law [LNPB], Legal system: costs & funding [LNAF], Legal ethics & professional conduct [LATC], Constitution: government & the state [JPHC]